The Pension Fund Regulatory and Development Authority (PFRDA) on March 10, 2026, issued the notification regarding the Reclassification of existing Corporates under NPS into Government Entities and Legal Entities (other than Government).
The following has been stated namely: -
• National Pension System (NPS) is mandatory for Central Government employees (except Armed Forces) joining on/after January 01, 2004, and extended to all citizens (including corporate sector) since May 01, 2009.
• Existing Corporate sector entities under NPS will now be reclassified into:
o Government Entities
o Legal Entities (other than Government)
• Government Entities include statutory bodies, government companies, CPSEs, SPSEs, and other entities owned/controlled by Central or State Governments.
• Such entities will be shifted from Corporate model to Government Sector model under NPS.
• Employees of Government Entities will be directly onboarded via CRA, without Point of Presence (PoP) involvement → no PoP charges applicable.
• These entities will continue to follow PFRDA Exit & Withdrawal Regulations, 2015 and grievance redressal rules.
• To qualify as a Government Entity, organisations must:
o Ensure mandatory NPS coverage for all employees
o Transfer Superannuation Fund (AUM) to NPS within 1 year
o Have technical capability for direct CRA integration
• Certification/undertaking must be submitted (by authorized officials like Head/CFO/CS/CCO) to CRA by March 27, 2026.
• If certification is not submitted, the entity will be treated as a Legal Entity (non-government) and applicable charges will apply.
• In case an employee moves from a Government Entity to a non-government entity, the former must ensure proper de-tagging in CRA system.
[Notification No. PFRDA/2026/18/REG-POP/03]
